Deutsche Bank Downgrades Occidental Petroleum (OXY) to Hold
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Price: $93.69 +0.92%
Rating Summary:
12 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
12 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade OXY Now!
Deutsche Bank downgraded Occidental Petroleum (NYSE: OXY) from Buy to Hold with a price target of $80.00 (from $95.00).
The firm comments, "We pushed Oxy on the California story, then buyback. Where previously the US was low growth/high free cashflow, the Middle East the growth driver, now the quest for organic growth in the US has seen capex soar while volumes are forecast to drop below the 5% target next year. Disclosure has been relatively limited, making it difficult to understand either muted volumes & earnings growth or long term value. Over time, our thesis has drifted and our last hope, of a total change of strategy towards cash return to shareholders through a 50%+ increase in dividend, is not within current plans or outlook. The story is not broken, but the premium story has been diluted, and although the multiple is reduced, the stock still does not screen as cheap."
For an analyst ratings summary and ratings history on Occidental Petroleum click here. For more ratings news on Occidental Petroleum click here.
Shares of Occidental Petroleum closed at $75.21 yesterday, with a 52 week range of $72.43-$106.68.
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The firm comments, "We pushed Oxy on the California story, then buyback. Where previously the US was low growth/high free cashflow, the Middle East the growth driver, now the quest for organic growth in the US has seen capex soar while volumes are forecast to drop below the 5% target next year. Disclosure has been relatively limited, making it difficult to understand either muted volumes & earnings growth or long term value. Over time, our thesis has drifted and our last hope, of a total change of strategy towards cash return to shareholders through a 50%+ increase in dividend, is not within current plans or outlook. The story is not broken, but the premium story has been diluted, and although the multiple is reduced, the stock still does not screen as cheap."
For an analyst ratings summary and ratings history on Occidental Petroleum click here. For more ratings news on Occidental Petroleum click here.
Shares of Occidental Petroleum closed at $75.21 yesterday, with a 52 week range of $72.43-$106.68.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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